Construction scale: This project is composed of
"One Center and Seven Zones". The land planned for the medical care
center is 134 mu with a floor area
of 1,512m2; that planned for the natural oxygen bar wetland park
area covers 595 mu (including a
reservoir area of 457 mu); that
planned for the nursing community, the nursing platform and the elderly
university covers 147 mu with a
floor area of 55,857m2; that planned for the garden living
community and the planting area covers 196 mu with a floor area of 115,668m2; that planned for
the high-end healthcare community and the water park covers 113 mu with a floor area of 184,297m2.

Construction duration: 4 years

Supporting Conditions

Luliang County is a part of Qujing, Yunnan. The
county town is 120km away from Kunming, 63km from Qujing and 44km from
Shilin. As a significant sub-central city and tourism service center of
Qujing metropolitan area, Luliang undertakes agriculture of the basin region
of Central Yunnan, serves as an urban ecological function area, forms Central
Yunnan belt expressway together with Qujing, Lufeng, Shilin and Yuxi, and
becomes a node city transferring the radiation force of Central Yunnan city
agglomeration. The average altitude of the county is 1,840m. It has a
moderate climate, without chilly winter and intensely hot summer and it is
dry in spring and humid in autumn. The annual average temperature is 15.1°C.
The active accumulated temperature not below 10°C is 4,458°C. The mean annual
precipitation is 958.2mm, with 249.2 days of frost free period. The annual
sunshine hour is 2,442.5 hours with a sunshine rate of 51%. Xiushuiwan
Nursing Center Project of Luliang County is located near Daao Reservoir in
the planned new area the county, and is 3km away from the old area. It sits
in the 10-minute life circle of downtown Luliang County, the 30-minute life
circle of downtown Qujing City and 2-hour life circle of downtown Kunming
City. This project is provided with convenient traffic since its southern and
northern sides are close to municipal roads of Chaoyang Road West Extension
and Xihua Road West Extension. This project is constructed in low hill with
gentle slope. With stable geologic structure, mature supporting facilities of
municipal pipe network and superior natural environment, the project site is
suitable for healthcare and recreation. With the overall planning and
detailed control planning completed, this project is already ready for
construction.

Investment Estimate and Fund Raising

Investment estimate: an expected total
investment of RMB 1.46 billion, including RMB 60 million of national,
provincial, municipal and county-level funds and RMB 1.17 billion of bank
loans.

Fund raising: self-raising by hotel, social
financing and investment invitation

Preferential Policies Applicable

This project can enjoy the preferential policies
for investment access, land supply, finance and taxation, in accordance with
the Preferential Policies of Qujing
City for Encouraging Investment Promotion.

Market Prediction (Analysis)

In 2014, the registered population of Luliang
County was 677,500, of which 87,000 (12.84%) are above 60 (this population
will progressively increase at 0.5% year on year). According to the national
planning that pension beds shall be provided for the elderly above 60 at a
ratio of 35%, around 30,450 beds shall be provided in Luliang County.
According to the goal mentioned in the national and provincial Construction Plan of Social Pension
Service System (2010-2015) that "every 1,000 elders must have 30
elderly pension beds", Luliang is far below this goal. With the
sustained and rapid development of healthy pension industry, China, Yunnan
Province and Qujing City have successively introduced many policies to
promote the development of this industry. China is accelerating the aging
trend, and will enter the "Great Health Era". Qujing is
accelerating the development of pension undertakings to meet demands of the
elders. As institutions of Luliang County are far below the pension bed goal,
it is urgent to accelerate such construction.

Profit Model and Preliminary Benefit Analysis

Economic benefit: The payback period of this
project is expected to be 14 years (including 4 for construction).

Social benefit: This project will provide the
elderly of Luliang County and surrounding places with a high-end nursing
institution focusing on nursing, supplemented by medical treatment and
combining medical service and healthcare through which the elderly will enjoy
not only nursing services, but also professional medical guarantee. By this
way, life quality of the elderly will be improved, as well as the utilization
of nursing institutions for the elderly. In addition, a lot of elderly with
chronic diseases can be diverted, so that bed tension of hospitals can be
eased. Thus, triple-win can be realized. This project will also promote
employment of the county and surrounding places and stimulate development of
the county economy.

Risk Analysis

Considering high financing amount of this
project, it may encounter fund risks in terms of finance in the future.